Balance sheets of North American's U.S. overall establishment within which extruded rubber thread is produced, as of December 31, 1987-91, and as of June 30, 1991-92 ........••....• Selected financial ratios of North American's U.S. overall establishment within which extruded rubber thread is produced, as of December 31, 1987-91, and as of June 30, 1991-92 ......... Balance sheets of Globe's U.S. overall establishment within which extruded rubber thread is produced, as of December 31, 1987-91, and as of June 30, 1991-92 .......... .................. Selected financial ratios of Globe's U.S. overall establishment within which extruded rubber thread is produced, as of Decemb•r 31, 1987-91, and as of June 30, 1991-92........................ Value of assets and return on assets of U.S. producers' establishments wherein extruded rubber thread is produced, calendar years 1987-91, and as of June 30, 1991-92 ............• Extruded rubber thread: Malaysian producers' capacity, production, shipments, and inventories, 1987-91, January~June 1991, January-June 1992, and projected 1992-93 ................. Extruded rubber thread: End-of-period inventories of U.S. importers and ratios to imports, by sources, 1987-91, January-June 1991, and January-June 1992 ....................... Extruded rubber thread: Shares of the quantity and value of U.S. apparent consumption accounted for by U.S. shipments of domestic product and U.S. shipments of imports, 1987-91, January-June 1991, and January-June 1992 ....................•.. Extruded rubber thread: Weighted-average net delivered price~ · and total quantities of U.S.-produced and imported product 1 sold to end users, by country and quarters, January 1987June 1992 ................................................. , . . • . Extruded rubber thread: Weighted-average net delivered prices and total quantities of U.S.-produced and imported product 2 sold to end users, by country and quarters, January 1987June 1992 ...................................................... · Extruded rubber thread: Weighted-average net delivered prices and total quantities of U.S.-produced and imported product 3 sold to end users , by country and quarters, January 1987-June 1992......................... .. ................................ Extruded rubber thread: Weighted-average net delivered prices and total quantities of U.S.-produced and imported product 4 sold to -end users, by country and quarters, January 1987-June 1992........................................................... Extruded rubber thread: Weighted-average net delivered prices and total quantities of U.S.-produced and imported products 5 and 6 sold to end users, by country and quarters, January 1987-June 1992......... .. ......................................

Note. - -Information that would reveal confidential operations of individual concerns may not be published and therefore has been deleted from this report . Such deletions are indicated by asterisks .

DETERMINATION AND VIEWS OF THE COMMISSION

UNITED STATES INTERNATIONAL TRADE COMMISSION REPORT TO THE PRESIDENT ON INVESTIGATION NO. TA-201-63 EXTRUDED RUBBER THREAD Determination On the basis of the information developed in the subject investigation, the Commission was equally divided on the question of whether extruded rubber thread 1 is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article. 2

3

The Commission did not find that critical circumstances

exist. 4 Finding and Recommendation on Remedy 5 Chairman Newquist and Commissioners Rohr and Nuzum recommend that the President proclaim a tariff-rate quota on imports of such extruded rubber The imported article covered by this investigation is extruded rubber thread of natural rubber latex, classified under heading 4007.00.00 of the Harmonized Tariff Schedule of the United States (HTS). 2 Chairman Newquist and Commissioners Rohr and Nuzum voted in the affirmative. Vice Chairman Watson and Commissioners Brunsdale and Crawford voted in the negative. 3 Section 330(d)(l) of the Tariff Act of 1930 provides that when the Commission is equally divided on the question of injury under section 201 of the Trade Act of 1974, "then the determination agreed upon by either group of Commissioners may be considered by the President as the determination of the Commission." 4 Chairman Newquist and Commissioners Rohr and Nuzum made a negative determination with respect to the issue of critical circumstances. Vice Chairman Watson and Commissioners Brunsdale and Crawford did not reach the issue. Section 202(b)(6) of the Trade Act of 1974 provides that "Only those members of the Commission who agreed to the affirmative determination under subsection (b) are eligible to vote on the recommendation to be made" on remedy. The provision further states that "Members of the Commission who did not agree to the affirmative determination may submit, in the [Commission's) report . . . separate views regarding what action, if any, should be taken under section 203 by the President. 11

4 thread for a 5-year period : (1) with the quota to be set at 17 million pounds for the first 2 years of the relief period and thereafter adjusted annually so as to be set at a level equal to 50 percent of domestic consumption for the prior calendar year , and (2) with existing rates of duty to apply to within-quota imports, and with the following rates of duty , in addition to any other duties , to apply to over-quota imports: 25 percent ad valorem in the first 3 years, 15 percent ad valorem in the fourth year , and 10 percent ad valorem in the fifth year. 6 They find that this action will address the serious injury found to exist and does not exceed the amount necessary to remedy such injury, and that such action will be the most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition.

They further

recommend that the continuation of this relief beyond the first 2 years be conditioned on the domestic industry's making reasonable progress in implementing the proposed adjustment plan and that such relief and industry adjustment be the subject of annual Comm i ssion review investigations under section 204 of the Trade Act of 1974 after the second year of relief for such period that relief remains in effect . Vice Chairman Watson and Commissioners Brunsdale and Crawford, having made a negative determination , did not participate in the vote on a remedy 6

Imports from Israel, Canada , and beneficiary countries under the Caribbean Basin Economic Recovery Act and the Andean Trade Preference Act are de minimis or nil . Accordingly , this recommendation does not apply to imports from Israel under the U.S . -Israel Free Trade Agreement or from beneficiary countries under the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act . With respect to imports from Canada , Chairman Newquist and Commissioners Rohr and Nuzum find that imports of extruded rubber thread from Canada are not substantial and are not contributing importantly to the serious injury to the domestic industry within the meaning of section 302(b) of the United States-Canada Free-Trade Agreement Implementation Act of 1988, and therefore recommend that any relief action not apply to such imports from Canada . Accordingly, they recommend that imports from Israel, Canada, and the CBERA and Andean Preference countries not be counted within the quota amounts.

5

recommendation.

However, as pr0vided for in the statute, they are submitting

views, which are included within this report, stating why they believe that the taking of a remedy action in this instance would be inappropriate. Background Following receipt of a petition filed on June 18, 1992, 7 by North American Rubber Thread Co., Inc., Fall River, MA, the United States International Trade Commission, effective June 23, 1992, instituted investigation No. TA-201-63 under section 202 of the Trade Act of 1'74 to determine whether extruded rubber thread is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing like or directly competitive with the imported article .

a~

article

The petitioner

alleged that critical circumstances exist within the meaning of section 203(b)(3)(B) of the Trade Act and sought provisonal relief. Notice of the institution of the Commission's investigation aha of public hearings to be held in connection therewith was given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission, Washington, DC, and by publishing the notice in the Federal Register of July 15, 1992 (57 F.R. 31387).

The hearing in connection with the

injury phase of the investigation was held on September 11, 1992, and the hearing on the questi.on of remedy was held on November 3, 1992.

Both hearings

were held in Washington, DC; all persons who requested the opportunity were permitted to appear in person or by counsel.

7

The petition was amended on June 23, 1992.

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VIEYS OF CHAIRMAN NEYQUIST AND COMMISSIONERS ROHR AND NUZUM We determine that extruded rubber thre.a d 1 is being imported i n to the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry producing an article like or directl y competitive with imported extruded rubber thread. 2

To remedy the serious

injury to the domestic industry and to be most effective in facilitating its efforts to make a positive adjustment to import competition , we recommend that the President impose a tariff - rate quota on imports of extruded rubber thread . To render an affirmative determination, section 202 of the Trade Act of 1974 (the Act) 3 requires that the Commission find that: (1) the imported article subject to the investigation is being imported into the United States in increased quantities; (2) the domestic industry producing an article like or directly competitive with the imported article is seriously injured , or is _threatened with serious injury; and (3) the increased imports are a substantial cause of serious injury , or the threa~ thereof, to the domestic industry . •